Ilmiawan Auwalin
Faculty Of Economics And Business, Universitas Airlangga, Surabaya, Indonesia

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Journal : Economic Development Analysis Journal

Optimizing The Program Kartu Prakerja for Young Workers Anggara, Rizki Tri; Auwalin, Ilmiawan
Economics Development Analysis Journal Vol 13 No 2 (2024): Economics Development Analysis Journal
Publisher : Economics Development Department, Universitas Negeri Semarang, Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.15294/edaj.v13i2.78970

Abstract

The Program Kartu Prakerja is a vital initiative in Indonesia to enhance job opportunities and quality, particularly for vulnerable individuals such as young workers. Many studies focus on unemployed individuals as research subjects. However, the real challenge is faced by the unemployed and those who are already employed. This paper investigates the program's effectiveness in enhancing employment opportunities for young workers by evaluating its impact on the probability of job retention and earnings. Using the August 2021 National Labour Force Survey (Sakernas) data, this study employs the Propensity Score Matching (PSM) method to compare the treatment group receiving the program with the control group not receiving the intervention. The findings show that the program had a significant negative impact on the probability of job retention for young participants, implying that some participants left their previous jobs in search of new ones. Another finding indicates that the program positively impacts earnings, although this impact was not statistically significant. These findings underscore the program's role as a strategic response to improving the labor market's functioning, which needs further optimization.
Impact of Program Keluarga Harapan on Child Labor During Covid-19 Candrawati, Cindy; Auwalin, Ilmiawan
Economics Development Analysis Journal Vol 13 No 2 (2024): Economics Development Analysis Journal
Publisher : Economics Development Department, Universitas Negeri Semarang, Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.15294/edaj.v13i2.78971

Abstract

This research examines the impact of the Program Keluarga Harapan (PKH), a conditional cash transfer program, on child labor in Indonesia. The study focuses on the periods before and during the COVID-19 pandemic, using data from the National Socioeconomic Survey (Susenas) from March 2019 to 2021. The study specifically looks at children aged 10-17 from economically vulnerable families living in urban and rural areas. The research employs the Propensity Score Matching (PSM) technique to determine the impact of PKH on child labor participation as a response to economic shocks and school closures during the pandemic. The findings indicate that while PKH provides financial assistance to families, it has not significantly reduced child labor during the pandemic or before. Despite an increase in the amount of aid and changes to monthly distributions during the pandemic, the proportion of working children has increased, especially in urban areas, where child labour rates have significantly risen compared to rural areas. This research emphasizes the need for comprehensive policy strategies to reduce reliance on child labor as a coping strategy during crises.